A Quick Analysis On Ten Lifestyle Group's (LON:TENG) CEO Salary

Alex Cheatle is the CEO of Ten Lifestyle Group Plc (LON:TENG), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Ten Lifestyle Group.

See our latest analysis for Ten Lifestyle Group

How Does Total Compensation For Alex Cheatle Compare With Other Companies In The Industry?

According to our data, Ten Lifestyle Group Plc has a market capitalization of UK£68m, and paid its CEO total annual compensation worth UK£306k over the year to August 2020. That's a modest increase of 6.7% on the prior year. In particular, the salary of UK£299.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations under UK£147m, the reported median total CEO compensation was UK£268k. From this we gather that Alex Cheatle is paid around the median for CEOs in the industry. Furthermore, Alex Cheatle directly owns UK£9.5m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 73% of total compensation represents salary and 27% is other remuneration. Ten Lifestyle Group is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Ten Lifestyle Group Plc's Growth

Over the last three years, Ten Lifestyle Group Plc has shrunk its earnings per share by 2.0% per year. It saw its revenue drop 5.6% over the last year.

A lack of EPS improvement is not good to see. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Ten Lifestyle Group Plc Been A Good Investment?

Since shareholders would have lost about 47% over three years, some Ten Lifestyle Group Plc investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

Alex receives almost all of their compensation through a salary. As we noted earlier, Ten Lifestyle Group pays its CEO in line with similar-sized companies belonging to the same industry. On the other hand, EPS growth and total shareholder return have been negative for the last three years. Considering overall performance, shareholders will likely hold off support for a raise until results improve.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for Ten Lifestyle Group that investors should be aware of in a dynamic business environment.

Switching gears from Ten Lifestyle Group, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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